Black Blade
26th June 2012, 12:14 PM
Firearms and Ammo as an Investment
Lately my stocks have been hit as energy and precious metals have fallen. While I wait for the market to find a bottom which may be a while yet (until after the 2012 election and clarity on "Taxmageddon"), I will be buying only hard assets and no stocks (in fact I may beselling ahead of Taxmageddon). The best deals so far look to be hard assets like firearms and ammo. Even so, finding the deals and the type of firearms and breed of ammo in my "prepper"-"survivalist" gun culture is not as easy as it seems. The value of my firearms and ammo holdings have nearly doubled in the last few months while commodities and stocks have taken some huge hits.
What firearms to buy?
Most of my firearms have increased in value while my stocks have declined. I would think that now the CZ-82 would be a decent longterm investment (have already increased about $50 since last year on average). Most any decent WASR has increased by about $100+ over the last year. As for current offerings I would think that the Polish milled reciever is a bargain and should increase significantly over the next few years. Heck, even my Argentine Sistema, Ballester-Molina and Mauser firearms have increased quite a bit over the last couple years. I can remember EG Makarovs originally for about $150 now selling for well over $400 each. Then there are the SVD and NDM-86 Dragunovs selling for several times the original purchase price (never mind the PSL has gone up as well although gone from vendors sites). Heck, even Belgian, Argy, Brazilian, etc. FALs have soared and a HK91? Forget it!!!! - those have skyrocketed higher as well. And I haven't even got to the antiques and high end collectables like Winchester lever actions, Sharps, Colt Pythons, etc.
Currently I am just buying cases of "cheap" milsurp ammo and occasionally mags and maybe a decent firearm here and there (lately a couple Polish milled AK variants). Actually did buy a couple Colt M4 6940 carbines and a semiauto Stoeger 12 ga for a nephew (for bird season), but as for "collectables" and "investment" purposes I think cheap bulk milsurp ammo, the 1960 milled Polish and Belgian High Power LE/military trade ins are highest on my buy list at this time. That's not to say that there aren't other bargains out there. I just haven't found them yet.
Well, as a slight update - I bought the last of the available Polish 1960 AK-47 rifles offerred online. These are well worth it as they are "milled" AKs for around $600 each. There may be some showing up eventually but not likely this cheap. Other milled AK-47 rifles tend to be a couple hundred to several hundred dollars more expensive.
I can also buy kits and build my own AR-15 and AK-47 variant rifles cheap and have an instant profit (on paper at least). I can alos take old war rifles that are on their last legs and refurbish them and "sporterize" those into decent hunting rifles. I know, I know - the purists are foaming at the mouth. I'm not talking about Museum quality rifles here, these are scraps that can be cobbled together and given a new lease on life. I have given away most of these to family and friends over the years. Most of which have gone to those who simply can't afford a new Remmington or Weatherby hunting rifle. Still, they would have some value in an investment sense.
What Ammo to Buy?
Well that is a good question as prices have already doubled and tripled or more in some cases. I have been buying up cheap 9x18mm for my makarov calibre handguns. Occasionally I find some deals on 9x19mm and .45 ACP as well. Handgun ammo isn't much of a problem right now. I have been concentrating on cases of "orphan" calibres like the Sant Barbara milsurp 9x23mm Largo for my Spanish handguns.
I have noticed that shotgun shells in my area are running short except some trap loads and pheasant loads. I really should pick up a few cases of Federal 6 shot and some 10 gauge ammo for my hunting needs. I have plenty of 00 buckshot shells for up close and personal defense ammo but my needs are more for hunting and the shortage of some size shot may be a decent investment of sorts but not like it is for handguns and rifles.
When it comes to rifles I have been buying mostly cases of cheap milsurp 5.45x39mm, 7.62x39mm, 7.62x54Rmm ammo. I have also been buying steel cased .223/5.56 and 7.62x39 ammo for shooting and stiockpiling now that most brass-cased surplus has dried up of become ridiculously expensive. Ditto with 7.62x51 NATO (.308 Winchester). There is some Korean 30.06 milsurp coming into the US now along with some old US Garands but I haven't heard much about the quality yet from new reviews.
Orphans? I have a few cases of milsurp "orphan" and somewhat rare ammo. First are the "orphans" like the 9x23mm Largo pistol ammo. It is similar to the .38 Super and in some guns can fire without too much of a problem in the same .38 Super handgun (tho strongly not recommended). I shoot this ammo in my Star Modelo Supers. I also have Chilean milsurp 7x57mm for my 7mm Mausers. Not great stuff but good enough for range ammo, same applies to the milsurp 6.5x55mm Swedish mauser ammo in battlepacks that seem to be unobtanium right now. Same with 7.62x51 German DAG and Brit Radway ammo. That said, I have been adding Yugo milsurp 7.92x57 (8mm Mauser) sniper ammo for my M76 rifles as it is harder to find and getting more expensive all the time (fortunately the bulk of mine was bought at about a third the current price).
Conclusion
Considering that the global economy is in the crapper and stock markets will plunge further - at least until the elections and depending on whether or not "Taxmageddon" can be avoided, I will keep buying these hard assets and avoid paper for the time being (or most any investment with a "paper trail"). Not only do I get to enjoy the "gun collecting" hobby and various gun sports, but I also get to protect my investments from a fickle market that is being run over by Wall Street traders who are essentially milking the wealth out of middle America. I just won't play that game - right now the Stock Markets are just casinos and the odds are in the "House's" favor. Should Barack Obama be reelected we will see a massive surge in guns and ammo buying with the expectation that a lame-duck President Obama will have no constraints of a third term to keep him from his antigun agenda. Getting in now means currently owned guns and ammo would be "grandfathered" in and worth their weight in gold (so to speak).
- Black Blade
Charts:
http://cdn4.ammo.net/media/images/infographics/Are-Guns-Ammo-New-Gold-Part-1.jpg
http://cdn1.ammo.net/media/images/infographics/Are-Guns-Ammo-New-Gold-Part-2.jpg
Lately my stocks have been hit as energy and precious metals have fallen. While I wait for the market to find a bottom which may be a while yet (until after the 2012 election and clarity on "Taxmageddon"), I will be buying only hard assets and no stocks (in fact I may beselling ahead of Taxmageddon). The best deals so far look to be hard assets like firearms and ammo. Even so, finding the deals and the type of firearms and breed of ammo in my "prepper"-"survivalist" gun culture is not as easy as it seems. The value of my firearms and ammo holdings have nearly doubled in the last few months while commodities and stocks have taken some huge hits.
What firearms to buy?
Most of my firearms have increased in value while my stocks have declined. I would think that now the CZ-82 would be a decent longterm investment (have already increased about $50 since last year on average). Most any decent WASR has increased by about $100+ over the last year. As for current offerings I would think that the Polish milled reciever is a bargain and should increase significantly over the next few years. Heck, even my Argentine Sistema, Ballester-Molina and Mauser firearms have increased quite a bit over the last couple years. I can remember EG Makarovs originally for about $150 now selling for well over $400 each. Then there are the SVD and NDM-86 Dragunovs selling for several times the original purchase price (never mind the PSL has gone up as well although gone from vendors sites). Heck, even Belgian, Argy, Brazilian, etc. FALs have soared and a HK91? Forget it!!!! - those have skyrocketed higher as well. And I haven't even got to the antiques and high end collectables like Winchester lever actions, Sharps, Colt Pythons, etc.
Currently I am just buying cases of "cheap" milsurp ammo and occasionally mags and maybe a decent firearm here and there (lately a couple Polish milled AK variants). Actually did buy a couple Colt M4 6940 carbines and a semiauto Stoeger 12 ga for a nephew (for bird season), but as for "collectables" and "investment" purposes I think cheap bulk milsurp ammo, the 1960 milled Polish and Belgian High Power LE/military trade ins are highest on my buy list at this time. That's not to say that there aren't other bargains out there. I just haven't found them yet.
Well, as a slight update - I bought the last of the available Polish 1960 AK-47 rifles offerred online. These are well worth it as they are "milled" AKs for around $600 each. There may be some showing up eventually but not likely this cheap. Other milled AK-47 rifles tend to be a couple hundred to several hundred dollars more expensive.
I can also buy kits and build my own AR-15 and AK-47 variant rifles cheap and have an instant profit (on paper at least). I can alos take old war rifles that are on their last legs and refurbish them and "sporterize" those into decent hunting rifles. I know, I know - the purists are foaming at the mouth. I'm not talking about Museum quality rifles here, these are scraps that can be cobbled together and given a new lease on life. I have given away most of these to family and friends over the years. Most of which have gone to those who simply can't afford a new Remmington or Weatherby hunting rifle. Still, they would have some value in an investment sense.
What Ammo to Buy?
Well that is a good question as prices have already doubled and tripled or more in some cases. I have been buying up cheap 9x18mm for my makarov calibre handguns. Occasionally I find some deals on 9x19mm and .45 ACP as well. Handgun ammo isn't much of a problem right now. I have been concentrating on cases of "orphan" calibres like the Sant Barbara milsurp 9x23mm Largo for my Spanish handguns.
I have noticed that shotgun shells in my area are running short except some trap loads and pheasant loads. I really should pick up a few cases of Federal 6 shot and some 10 gauge ammo for my hunting needs. I have plenty of 00 buckshot shells for up close and personal defense ammo but my needs are more for hunting and the shortage of some size shot may be a decent investment of sorts but not like it is for handguns and rifles.
When it comes to rifles I have been buying mostly cases of cheap milsurp 5.45x39mm, 7.62x39mm, 7.62x54Rmm ammo. I have also been buying steel cased .223/5.56 and 7.62x39 ammo for shooting and stiockpiling now that most brass-cased surplus has dried up of become ridiculously expensive. Ditto with 7.62x51 NATO (.308 Winchester). There is some Korean 30.06 milsurp coming into the US now along with some old US Garands but I haven't heard much about the quality yet from new reviews.
Orphans? I have a few cases of milsurp "orphan" and somewhat rare ammo. First are the "orphans" like the 9x23mm Largo pistol ammo. It is similar to the .38 Super and in some guns can fire without too much of a problem in the same .38 Super handgun (tho strongly not recommended). I shoot this ammo in my Star Modelo Supers. I also have Chilean milsurp 7x57mm for my 7mm Mausers. Not great stuff but good enough for range ammo, same applies to the milsurp 6.5x55mm Swedish mauser ammo in battlepacks that seem to be unobtanium right now. Same with 7.62x51 German DAG and Brit Radway ammo. That said, I have been adding Yugo milsurp 7.92x57 (8mm Mauser) sniper ammo for my M76 rifles as it is harder to find and getting more expensive all the time (fortunately the bulk of mine was bought at about a third the current price).
Conclusion
Considering that the global economy is in the crapper and stock markets will plunge further - at least until the elections and depending on whether or not "Taxmageddon" can be avoided, I will keep buying these hard assets and avoid paper for the time being (or most any investment with a "paper trail"). Not only do I get to enjoy the "gun collecting" hobby and various gun sports, but I also get to protect my investments from a fickle market that is being run over by Wall Street traders who are essentially milking the wealth out of middle America. I just won't play that game - right now the Stock Markets are just casinos and the odds are in the "House's" favor. Should Barack Obama be reelected we will see a massive surge in guns and ammo buying with the expectation that a lame-duck President Obama will have no constraints of a third term to keep him from his antigun agenda. Getting in now means currently owned guns and ammo would be "grandfathered" in and worth their weight in gold (so to speak).
- Black Blade
Charts:
http://cdn4.ammo.net/media/images/infographics/Are-Guns-Ammo-New-Gold-Part-1.jpg
http://cdn1.ammo.net/media/images/infographics/Are-Guns-Ammo-New-Gold-Part-2.jpg